Correlation Between Health Catalyst and Tabula Rasa
Can any of the company-specific risk be diversified away by investing in both Health Catalyst and Tabula Rasa at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Health Catalyst and Tabula Rasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Health Catalyst and Tabula Rasa HealthCare, you can compare the effects of market volatilities on Health Catalyst and Tabula Rasa and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Health Catalyst with a short position of Tabula Rasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Health Catalyst and Tabula Rasa.
Diversification Opportunities for Health Catalyst and Tabula Rasa
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Health and Tabula is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Health Catalyst and Tabula Rasa HealthCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tabula Rasa HealthCare and Health Catalyst is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Health Catalyst are associated (or correlated) with Tabula Rasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tabula Rasa HealthCare has no effect on the direction of Health Catalyst i.e., Health Catalyst and Tabula Rasa go up and down completely randomly.
Pair Corralation between Health Catalyst and Tabula Rasa
If you would invest 804.00 in Health Catalyst on August 31, 2024 and sell it today you would earn a total of 61.00 from holding Health Catalyst or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Health Catalyst vs. Tabula Rasa HealthCare
Performance |
| Timeline |
| Health Catalyst |
| Tabula Rasa HealthCare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Health Catalyst and Tabula Rasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Health Catalyst and Tabula Rasa
The main advantage of trading using opposite Health Catalyst and Tabula Rasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Health Catalyst position performs unexpectedly, Tabula Rasa can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tabula Rasa will offset losses from the drop in Tabula Rasa's long position.| Health Catalyst vs. National Research Corp | Health Catalyst vs. Certara | Health Catalyst vs. HealthStream | Health Catalyst vs. Forian Inc |
| Tabula Rasa vs. Streamline Health Solutions | Tabula Rasa vs. HealthStream | Tabula Rasa vs. National Research Corp | Tabula Rasa vs. Forian Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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